Land degradation: links to agricultural output and profitability

Abstract

To understand land degradation and assess policy responses, knowledge is needed of the bio‐physical causes, the economic effects on farms and the incentives farmers face to avoid or ameliorate the degradation. An empirical study of land degradation in the Australian state of New South Wales is presented in this article. The results suggest that there are incentives for farmers to co‐exist with certain forms of degradation, while there are also incentives to avoid some other forms.